Who will Trump appoint as SEC chairman? What pro-cryptocurrency policies will he adopt?

Author: Tony Romm, The Washington Post

Compiled by: Wu Says Blockchain

President-elect Donald Trump is preparing to take a more lenient stance on cryptocurrencies, focusing on a group of industry-friendly candidates for key positions, while his senior advisors are also discussing potential federal policy changes with cryptocurrency executives.

By seeking a more relaxed regulatory environment, Trump hopes to fulfill his campaign promise to make the U.S. the "global cryptocurrency capital"—a statement that has angered consumer regulators but garnered strong support from the industry, driving Bitcoin prices to soar.

Early discussions have centered on a group of financial regulatory agencies, including the U.S. Securities and Exchange Commission (SEC). According to five people familiar with the matter, Trump's aides are considering several current regulators, former federal officials, and financial industry executives for important leadership positions, many of whom have publicly expressed support for cryptocurrencies. They spoke on the condition of anonymity to discuss the matter, noting that the process is still in its early stages and the list of candidates is constantly changing.

These appointments are crucial: under Trump's leadership, the heads of the SEC and other agencies will have the authority to decide whether cryptocurrencies will become a larger and more formal part of the financial system. This choice has significant implications for the global economy, and the risks are high, as evidenced by the collapse of crypto giant FTX in 2022 and the catastrophic ripple effects that followed.

Candidates being considered for the SEC and other positions include Daniel Gallagher, a former SEC official currently at fintech company Robinhood, which offers cryptocurrency wallets and stock trading services; and two Republican commissioners of the agency, Hester Peirce and Mark Uyeda.

Gallagher has been a Republican donor and previously criticized the SEC for its "scorched earth policy" towards cryptocurrencies. Peirce and Uyeda have also criticized their agency's policies and enforcement actions under President Joe Biden. Peirce is seen as a potential interim chair of the SEC after Trump takes office, and she may lead a special federal cryptocurrency policy task force.

"The commission's war on cryptocurrencies must end, including enforcement actions against cryptocurrencies that have no fraud or harm allegations simply for being unregistered," Uyeda said in an interview with Fox Business this month. "President Trump and American voters have sent a clear message. Starting in 2025, the SEC's role is to execute this mission."

Trump's aides are also looking at Paul Atkins, a former SEC commissioner who assisted with Trump's last government transition; and Chris Giancarlo, a former Commodity Futures Trading Commission (CFTC) commissioner.

The SEC candidates will replace current chair Gary Gensler, whom Trump promised to "fire" at a major Bitcoin conference this summer. Under Gensler's leadership, the SEC has aggressively targeted crypto companies, filing fraud charges against FTX leaders and a series of allegations against another trading platform, Binance, regarding its business practices. The agency has also clashed in court with other crypto exchanges, Coinbase and Kraken, as well as Ripple, the company behind the XRP token, accusing them of failing to comply with federal laws requiring registration of their platforms or tokens—allegations that all these companies deny.

"His days are numbered," Ripple CEO Brad Garlinghouse said, adding that the company "has been in touch with Trump's transition team." "I think it's clear that this is an area they intend to continue to focus on. I think Trump and many others realize there is a range of new technologies that could define the coming decades."

Broadly speaking, cryptocurrency supporters believe Gensler has wrongly expanded the law due to his personal aversion to digital assets—they hope his successor will reverse some of the ongoing federal enforcement actions. However, it remains unclear whether Trump can or will actually fire the current SEC chair rather than demote him to commissioner while handing the agency over to new leadership. A full dismissal of Gensler—a Senate-confirmed regulator—could trigger a novel and complex legal battle over presidential powers, some insiders say.

As for Gensler himself, he has not indicated whether he would resign after a government transition, although senior SEC officials typically do so. A spokesperson declined to comment.

"The American people overwhelmingly re-elected President Trump, giving him a mandate to fulfill his campaign promises," said Karoline Leavitt, a spokesperson for Trump's transition team, in a statement. "He will deliver on that promise."

Regardless of the outcome, early signs indicate that Washington's attitude toward cryptocurrencies will undergo a dramatic shift, highlighting the industry's rapid rise as a significant donor in American politics—it has helped elect dozens of friendly lawmakers while strongly supporting Trump's presidential campaign.

Industry executives say they primarily seek regulatory clarity, as Congress has failed to pass comprehensive legislation to govern their products and services—such rules would determine when cryptocurrencies are considered securities or currencies, what investor protections should apply, and which agency will regulate the industry and its products.

"I think a lot of the industry, a lot of companies say they want to be regulated, and their goals are actually the opposite," said Coinbase Chief Legal Officer Paul Grewal. Regarding cryptocurrencies, he stated the situation is different: "There is specific legislation in Congress right now that we believe will protect investors and frankly address some of the ambiguities."

But this political push has unsettled some Democrats on Capitol Hill, who argue that the legislative solutions supported by the crypto industry could actually leave millions of Americans with less protection—heightening the risks of losses and fraud while posing new threats to the financial system.

"This means people will be more vulnerable to an industry rife with fraud, abuse, market manipulation, and cyber vulnerabilities," said Patrick Woodall, policy director of the American Financial Reform organization, which advocates for stronger financial regulation. "This is an extremely unstable industry where people suffer massive losses, and insider trading is very common."

To win the industry's support, Trump attended a national Bitcoin conference in Nashville in July, announcing an agenda in favor of cryptocurrencies, stating he would push this agenda again when he returns to the Oval Office. He promised to advance a cryptocurrency policy "written by people who love your industry" and predicted that Bitcoin would soar under his leadership.

Trump's unreserved support marks a significant shift from his first term, when he dismissed cryptocurrencies as "a scam." But ultimately he embraced the industry because it provided him with public praise and financial support, even helping him launch his own cryptocurrency project just weeks before winning the presidency. According to two insiders, several crypto giants, including Kraken Chief Legal Officer Marco Santori and David Bailey, who hosted the cryptocurrency conference in Nashville, later attended Trump's election night party in Florida.

Bailey did not respond to requests for comment. Kraken declined to comment, and Santori also refused to comment as one of the cryptocurrency executives potentially discussed for a role in Trump's transition team.

To prepare for a return to the White House, Trump has surrounded himself with several prominent cryptocurrency supporters, including Elon Musk, one of his closest tech allies and financiers, and Howard Lutnick, who has close ties to the troubled cryptocurrency Tether. Lutnick is co-chair of the presidential transition process, and Bailey, who helped Trump connect with the Bitcoin community, remains actively involved.

Lutnick's involvement, in particular, has raised concerns about potential conflicts of interest—since he is helping to select leaders for federal positions that could directly impact his business as CEO of Wall Street firm Cantor Fitzgerald. For example, Lutnick has publicly acknowledged that he manages "many, many assets" of Tether, which is facing potential sanctions from the U.S. Treasury.

According to a person familiar with the cryptocurrency plans, Lutnick has been in contact with other Trump aides regarding the cryptocurrency industry, including Michael Kratsios, who previously served as the White House Chief Technology Officer. Officials have spoken with at least one major cryptocurrency company about the possibility of joining a new presidential digital currency council, which Trump has promised to establish if elected.

Another person believes the incoming administration intends to appoint a top cryptocurrency advisor in a key policy department at the White House—the National Economic Council. Additionally, the government must fill several key roles: besides the SEC, Trump must select leaders for the Commodity Futures Trading Commission (CFTC), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC), all of which regulate certain elements of cryptocurrencies, including their relationship with the banking system.

Some cryptocurrency executives have indicated that they have also discussed potential early executive orders or other presidential directives with Trump's aides that could help the industry, such as clarifying regulatory authority among federal agencies or conducting research to find ways for the government to further develop the cryptocurrency ecosystem. They likened it to a series of similar orders issued during Trump's first term that clarified the government's regulatory approach to the financial system under what is known as the Dodd-Frank Act.

Some of these conversations date back to the campaign period, and it remains unclear whether Trump will take action as he prepares for another term. Many observers do expect him to fulfill his promise to establish a national cryptocurrency reserve to prevent the U.S. government from selling the Bitcoin and other tokens it seized in past criminal investigations.

"President Trump has the House and the Senate. He has the mandate," Bailey said last week on X, although as of Monday, the AP had not announced a series of House election results, leaving the partisan control of that chamber unclear. "We have the environment to get this done in the first 100 days."

Appendix: Candidate Backgrounds

According to insiders, candidates being considered for the SEC and other positions include:

1. Daniel Gallagher: Former SEC commissioner, currently at fintech company Robinhood, responsible for regulatory affairs. Robinhood offers stock trading and cryptocurrency services, including cryptocurrency wallets.

2. Hester Peirce: Current Republican commissioner at the SEC, known as "Crypto Mom" for her supportive stance on cryptocurrencies. She has repeatedly criticized the SEC's overly strict regulatory policies on cryptocurrencies and advocates for a clearer regulatory framework to promote the development of the cryptocurrency industry.

3. Mark Uyeda: Current Republican commissioner at the SEC, he opposes the SEC's tough stance on the cryptocurrency industry and advocates for ending enforcement actions against registration requirements without fraud or harm allegations. He has expressed support for the development of cryptocurrencies on multiple occasions, arguing that the SEC should provide space and clarity for innovation in the industry.